Freddie Mac Reports Lowest Mortgage Rates In 20 Months
After the economic downturn of 2008, the real estate market became a buyers’ market with interest rates and housing costs at lows unseen in previous years. The problem, of course, was that the Great Recession also brought a decreased number of potential homebuyers.
In recent years, we have seen the market turn around to favor the sellers, as housing prices have skyrocketed resulting in unprecedented increases in home appreciation. This was good news for sellers, but for buyers who had waited this seemed like it would bring their home buying dreams to a halt. Fortunately for those buyers, 2015 should see appreciation slow and, as of the first week of January, bring historically low mortgage interest rates.
Freddie Mac reported that as of January 8th, the rate on a 30-year fixed rate mortgage (FRM) was just 3.73 percent. Not only was that a significant drop from the prior week’s 3.87, but it also marked the lowest that rate has been since May 23rd, 2013 when it hit 3.59 percent. At the beginning of 2014, the rate on a 30-year FRM was 4.51 percent.
Experts predict that this decrease will not continue, and project that these rates should reach a high 4 percent or even 5 percent by the end of the year. For potential homebuyers, the beginning of the year marks a great opportunity to get a home loan at the most affordable rate we are likely to see in 2015.
Connect with a team of mortgage professionals who can make sure you get your home loan at the right time to maximize its affordability. The Ranch & Coast Mortgage Group Inc. in Solana Beach is here for all of your California mortgage needs. Contact us today and get the loan you need with our Quick Application.
